Standard And Poors Ratings Of Mutual Funds

There may be people who are interested in investing in mutual funds but are not too familiar with the funds or do not know which funds are good enough to invest. There are so many companies who do the analysis on mutual funds and give their ratings, to help the newer lot of people wanting to invest in mutual funds.

These ratings help one understand how each mutual fund is viewed by industry experts and this view depends on how well the fund performs in terms of investing other people’s money in the right stocks and giving them good returns.

Standard and Poor’s is one such financial services company whose services include credit ratings, equity research, funds ratings, governance services, evaluation and data services. It is one of the various credit rating agencies that has been designated a nationally recognized statistical rating organization by the U.S. Securities and Exchange Commission.

Standard and Poor’s provides ratings to the mutual funds based on the funds’ investments and counterparties, its liquidity and the market price exposure of the investments. Standard and Poor’s give both long term as well as short term credit ratings. They not only give ratings to the funds, they also provide a detailed report about the fund. The report includes the Analyst opinion about the fund, background of the investment team, details about the performance, investment philosophy and other relevant information about the fund.

The clients of this company include institutional professionals, financial institutions, financial advisors, corporations and individual investors worldwide.

Corporate junk bond mutual funds are usually those funds which have a lower rating, or in simpler words, the risk factor of investing in these bonds is higher. These funds may be offered at lower prices and in order to lure the investors, these are more commonly known as high yield funds. More..